trade-in (salvage value) is $21,000. Prepare a depreciation schedule by using the double-declining-balance method for the trucks. (Round dollar amounts to the nearest cent. Round your percentages to six decimal places.) U-Haul Double-Declining-Balance Depreciation Schedule Truck Fleet Ending book value ($) End of Beginning Book Value ($) Depreciation Rate (%) Depreciation for the Year ($) Accumulated Year Depreciation ($) $181,000 (new) 1 3 % 4 5 % 7 2.
trade-in (salvage value) is $21,000. Prepare a depreciation schedule by using the double-declining-balance method for the trucks. (Round dollar amounts to the nearest cent. Round your percentages to six decimal places.) U-Haul Double-Declining-Balance Depreciation Schedule Truck Fleet Ending book value ($) End of Beginning Book Value ($) Depreciation Rate (%) Depreciation for the Year ($) Accumulated Year Depreciation ($) $181,000 (new) 1 3 % 4 5 % 7 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Question
Some trucks purchased by a U-Haul franchise should last 7 years. The purchase price was $176,000. Shipping costs were $5,000. The trade-in (salvage value) is $21,000. Prepare a depreciation schedule by using the double-declining-balance method for the trucks. (Round dollar amounts to the nearest cent. Round your percentages to six decimal places.)
U-Haul
Double-Declining—Balance Depreciation Schedule
Truck Fleet
Transcribed Image Text:Some trucks purchased by a U-Haul franchise should last7 years. The purchase price was $176,000. Shipping costs were $5,000. The
trade-in (salvage value) is $21,000. Prepare a depreciation schedule by using the double-declining-balance method for the trucks. (Round
dollar amounts to the nearest cent. Round your percentages to six decimal places.)
U-Haul
Double-Declining-Balance Depreciation Schedule
Truck Fleet
Depreciation Rate
(%)
Depreciation for the
Year ($)
Ending book
value ($)
End of
Beginning Book
Value ($)
Accumulated
Year
Depreciation ($)
$181,000 (new)
1
2
3
4
5
%
7
%
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